Maurie Backman, The Motley Fool Thu, November 12, 2026 at 3:08 PM EST 3 min read NVDA -5.41% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
If you have access to a 401(k) plan through your work, you probably know that it's an easy way to save for retirement. All you need to do is tell your employer how much money you want to contribute, up to the allowable annual limit, and your payroll department takes care of the rest.
Contributions to 401(k)s are deducted from your paycheck, making it easy to stay on track. And you may even get free money through a workplace match.
Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Because 401(k) contribution limits are much higher than IRA limits, many savers aren't able to put in the max. But if you're someone who can max out a 401(k), here's some good news. The IRS just announced higher 401(k) contribution limits for 2027. Here's what you need to know.
The amount of money you're allowed to contribute to a 401(k) depends on your age. If you're under 50, the current limit is $24,500, which will rise by $1,000 to $25,500 in 2027.
If you're 50 or older, you get to make a catch-up contribution in your 401(k). That catch-up is currently worth $8,000, but in 2027, it will increase to $8,500.
And in case you're wondering, you do not have to be behind on savings to take advantage of catch-up contributions. The IRS won't be checking your 401(k) balance to see how much of a balance you've accumulated. As long as you meet the age requirements, catch-ups are yours to benefit from.
And speaking of catch-ups, there's a super 401(k) catch-up available for savers between the ages of 60 and 63. This year, it's worth $11,250. In 2027, it's rising to $11,750.
Now that super catch-up can't be stacked on top of the regular catch-up for people 50 and over. In other words, if you're 62, you can't contribute $8,500 plus $11,750 as your 2027 catch-up. You're limited to $11,750. But it's still a great way to give your 401(k) a pre-retirement boost.
Maxing out a 401(k) is very difficult unless you earn a high salary or have very low expenses. If you're unable to take advantage of these new limits, don't sweat it. Instead, do what you can to increase your contribution rate.
If you're saving $5,000 in your 401(k) this year, aim for $6,000 next year. Steadily increasing your savings rate could lead to a lot more money by the time your career ends.
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.
Many Americans leave money on the table in retirement. Learn more about these retirement strategies and more, available when you join Stock Advisor.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy.
401(k) Contribution Limits Are Increasing in 2027. Here's How Much You Can Save was originally published by The Motley Fool
